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Annual Report 2004 Transport in Hong Kong > Grow in Mainland China and Capture Opportunities in Europe by Building on Our Core Competencies

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Annual Report 2004 Transport in Hong Kong > Grow in Mainland China and Capture Opportunities in Europe by Building on Our Core Competencies MTR Corporation Limited MTR Corporation Vision To be a world class enterprise, growing in Hong Kong Annual report and beyond, focusing on rail, property and related businesses Mission > Provide excellent value to our Customers, enhancing 2004 their quality of life, and contributing to development of the communities in which we operate > Provide opportunities for employees to grow and prosper with the Company and reward our investors > Develop the rail network as the backbone of public Annual report 2004 transport in Hong Kong > Grow in Mainland China and capture opportunities in Europe by building on our core competencies Onwards, Upwards and Outwards MTR is always on the move > to new ways of thinking and delivering our services > to higher levels of operational and financial performance > to a world of business opportunities at home and abroad MTR Corporation Limited MTR Tower, Telford Plaza, Kowloon Bay, Hong Kong GPO Box 9916, Hong Kong Telephone (852) 2993 2111 Facsimile (852) 2798 8822 www.mtr.com.hk MTR Corporation Limited MTR Corporation Vision To be a world class enterprise, growing in Hong Kong Annual report and beyond, focusing on rail, property and related businesses Mission > Provide excellent value to our Customers, enhancing 2004 their quality of life, and contributing to development of the communities in which we operate > Provide opportunities for employees to grow and prosper with the Company and reward our investors > Develop the rail network as the backbone of public Annual report 2004 transport in Hong Kong > Grow in Mainland China and capture opportunities in Europe by building on our core competencies Onwards, Upwards and Outwards MTR is always on the move > to new ways of thinking and delivering our services > to higher levels of operational and financial performance > to a world of business opportunities at home and abroad MTR Corporation Limited MTR Tower, Telford Plaza, Kowloon Bay, Hong Kong GPO Box 9916, Hong Kong Telephone (852) 2993 2111 Facsimile (852) 2798 8822 www.mtr.com.hk 1ST PAGEPROOF 25 years of serving 02 Mar 2005 Hong Kong and beyond 1995 > The Agreement for the Design, 1999 Construction, Financing and Operation > Completion of Maritime Square of the Airport Railway was signed with and Tierra Verde at Tsing Yi Station the Government. marked the creation of our “second > The landmark 88-storey Two generation”integrated developments. International Finance Centre, Hong Kong’s > The first consultancy assignment tallest and most prestigious office building was signed in China for training 2000 was completed,adding to MTR’s investment services to the Guangzhou Metro for > In October, the successful initial and property management portfolio. a period of four years. public offering of MTR shares attracted 1985 a total demand of over HK$160 billion > On 31 May, the Island Line 1997 from retail and institutional investors operating from Chai Wan Station > MTR and other transport firms in Hong Kong and overseas.This to Admiralty Station commenced launched the Octopus Contactless represented an oversubscription of service and the then Governor, Smart Card, which has since become 17.4 times for a HK$9.4 billion offering Sir Edward Youde, officiated at the the most popular payment method on and created a shareholder base of over 1980 opening ceremony. public transport and for an increasing 600,000 at the time of listing. 2004 range of day-to-day expenses. > The full Modified Initial System (from > On 24 February, the Government Central Station to Kwun Tong Station) 2002 announced its decision to invite the was opened seven weeks ahead of > The Hong Kong SAR Government Company and KCRC to commence schedule and Her Royal Highness announced a feasibility study on a discussions on a possible merger for Princess Alexandra officiated at the possible merger between the which a joint report was submitted to opening ceremony on 12 February. Company and KCRC in June. the Government on 16 September. 1975 > Completion of Telford Gardens and 1986 > The re-development of MTR > In July, the Company signed the > The Company entered into an Agreement > Mass Transit Railway Corporation Telford Plaza I above Kowloon Bay > The last section of the Island Line Corporation Headquarters Building project agreement with the Government in Principle for a Build-Operate-Transfer was established on 26 September to Station and Depot, marked the was opened on 23 May. and development of Telford Plaza II for the design, construction, financing project with the Shenzhen Municipal build and operate a mass transit creation of MTR’s “first generation” above Kowloon Bay Station and Depot and operation of the Disneyland Resort People’s Government for Phase 2 of Line 4 railway system for Hong Kong, based integrated railway and property were completed. Line (then Penny’s Bay Rail Link) to and to operate the whole of Line 4 of the on prudent commercial principles. developments, and the start of our serve the future Hong Kong Disneyland. proposed Shenzhen Metro System. management of MTR properties along Construction started in the same month. 1998 > The Company entered into an Agreement Kwun Tong and Tsuen Wan lines. > The Tung Chung Line was opened 1979 > The Tseung Kwan O Line, the in Principle to form a Public-Private- on 22 June, extending MTR services to > On 30 September, the then Company’s fifth MTR line, officially Partnership with Beijing Infrastructure Lantau Island through West Kowloon Governor, Sir Murray Maclehose, 1982 commenced service four months Investment Co. Ltd and Beijing Capital > The Tsuen Wan Line was officially and Tsing Yi. officiated at the opening ceremony 1988 ahead of schedule on 18 August, Group for the investment, construction opened on 10 May, seven months of MTR. The then Modified Initial > The Company secured its first > On 6 July, the Airport Express began providing an efficient and reliable train and operation of the Beijing Metro Line 4. ahead of schedule and considerably System (now part of the Kwun Tong long-term credit ratings from service, transporting passengers service to residents of the Tseung below budget. The then acting > MTR achieved patronage volume of 2.72 Line) commenced public service on Moody’s and S&P,at par with between the Hong Kong International Kwan O district. Governor, Sir Philip Haddon-Cave, million on 17 December, the highest 1 October and carried 285,000 the sovereign ratings of the Hong Airport at Chek Lap Kok and Central in officiated at the opening ceremony. recorded on a single, regular 19-hour passengers on the first day of Kong Government. 23 minutes. operation. service day, and a record Christmas Eve 1984 1989 patronage of 3.38 million passengers. > The Company obtained its first > The Eastern Harbour Rail crossing > In December, MTR was awarded the short-term credit ratings from was opened on 5 August, providing “Good People Management Award Standard & Poor’s (S&P) and Moody’s, passengers a much-needed 2004” by the Hong Kong Labour an important recognition that helped alternative for crossing Victoria Department.This is the third consecutive access funding from the international Harbour. 2003 time the Company has won this award, capital markets. > In November, the Company signed > The MTR Art in Stations programme an achievement that testifies to MTR’s the overall project agreement with the > MTR and Kowloon-Canton Railway was launched to enhance the outstanding achievements in good Government for the Tung Chung Corporation (KCRC) joined hands to travelling environment for passengers management practice and the successful Cable Car, which will link Tung Chung launch Common Stored Value Tickets and promote local arts. labour-management partnership over with Ngong Ping and the nearby Big in mid-October. 25 years. Buddha Statue and Po Lin Monastery, creating a major new tourist and leisure landmark. Designed by Sedgwick Richardson Editorial by Conatus Limited Limited Designed Sedgwick by Richardson Conatus by Editorial 1ST PAGEPROOF 25 years of serving 02 Mar 2005 Hong Kong and beyond 1995 > The Agreement for the Design, 1999 Construction, Financing and Operation > Completion of Maritime Square of the Airport Railway was signed with and Tierra Verde at Tsing Yi Station the Government. marked the creation of our “second > The landmark 88-storey Two generation”integrated developments. International Finance Centre, Hong Kong’s > The first consultancy assignment tallest and most prestigious office building was signed in China for training 2000 was completed,adding to MTR’s investment services to the Guangzhou Metro for > In October, the successful initial and property management portfolio. a period of four years. public offering of MTR shares attracted 1985 a total demand of over HK$160 billion > On 31 May, the Island Line 1997 from retail and institutional investors operating from Chai Wan Station > MTR and other transport firms in Hong Kong and overseas.This to Admiralty Station commenced launched the Octopus Contactless represented an oversubscription of service and the then Governor, Smart Card, which has since become 17.4 times for a HK$9.4 billion offering Sir Edward Youde, officiated at the the most popular payment method on and created a shareholder base of over 1980 opening ceremony. public transport and for an increasing 600,000 at the time of listing. 2004 range of day-to-day expenses. > The full Modified Initial System (from > On 24 February, the Government Central Station to Kwun Tong Station) 2002 announced its decision to invite the was opened seven weeks ahead of > The Hong Kong SAR Government Company and KCRC to commence schedule and Her Royal Highness announced a feasibility study on a discussions on a possible merger for Princess Alexandra officiated at the possible merger between the which a joint report was submitted to opening ceremony on 12 February. Company and KCRC in June. the Government on 16 September.
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